Earnings Call Excerpt
Guess, Inc. (GES)
F3Q08 Earnings Call
December 4, 2007 4:30 pm ET
Executives
Paul Marciano – Chief Executive Officer
Maurice Marciano –Chairman of the Board
Carlos Alberini – President & Chief Operating Officer
Dennis Secor – Chief Financial Officer
Analysts
Gabrielle Kivitz – Deutsche Bank Securities
Christine Chen – Needham & Company
Eric Beder – Brean, Murray & Co., Inc.
John Rouleau – Wachovia Securities
Holly Guthrie – Janney Montgomery Scott
Betty Chen- Wedbush Morgan Securities, Inc.
Margaret Whitfield – Sterne, Agee & Leach
Jeff Klinefelter – Piper Jaffray
Diana Katz – Morgan, Keegan & Company
Janet Kloppenburg – JJK Research
Presentation
Operator
Good day and welcome to Guess’ Third Quarter Fiscal 2008 Conference Call. Before we get started I would like to remind you of the company’s safe harbor language. The statements contained in this conference call which are not historical facts including statements regarding future plans and guidance for current and future periods maybe deemed to constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results might differ materially from those suggested and such statements due to a number of risks and uncertainties as described in the company’s most recent annual report on Form 10K and other filings with the SEC. Now, for opening remarks and introductions I would like to turn the call over to Paul Marciano, Chief Executive Officer of the Company. Please go ahead.
Paul Marciano
Good afternoon and thank you for joining us today to discuss Guess’ financial results for third quarter of fiscal year 2008. Joining me are Maurice Marciano, Chairman of the Board; Carlos Alberini, President and COO; and Dennis Secor, Chief Financial Officer. The third quarter was another record setting quarter for our company. We reported the highest revenue and earnings for any quarter in the company’s history. All our businesses around the world contributed to the strong top and bottom line growth. Our revenue increased 43% and operating income increased 45% in the quarter. Net earning reached $58 Million and increased 32% from last year. Earnings per share for third quarter reached $0.62 a 29% increase from $0.48 last year. This marked our 17 consecutive quarter of earning growth.
We continue to grow global business ahead of expectation and manage this growth with long term view and discipline. We are focusing to invest in carriers to support the rapid growth with a strong infrastructure and a great team worldwide. I will start with Europe. The third quarter was another great quarter with revenue growth up 79% to $159.4 Million. Operating profit increased to $46 Million. Revenues were ahead of expectations in every business including set of handbags, shoes, Guess apparel and the Guess [inaudible] line we acquired at the end of last year. The business alone contributed about 705 of earnings growth for European segment this quarter.
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